Traders that are looking for a trade might want to take a look at a straddle on Qualcomm (NASDAQ:QCOM). The stock has been lagging the QQQ in the past couple of sessions, but a trader that thinks the QQQ is going much higher needs to have some upside performance from Qualcomm (QCOM).
Qualcomm Chart - last nine months
Shares of Qualcomm (NASDAQ:QCOM) didn't participate with the QQQ yesterday, but the stock is hovering near the lower end of our retracement bracket. A break below the recent lows of $42.60 could have this one leading a decline, but any strength above the $48.15 level could see a push higher to $53.55 or $57 near-term. that kind of action would most likely bolster the QQQ higher still.
Traders looking at a straddle on QCOM may be looking at the Oct $45 or November $45 strike. The Oct $45 calls/puts are (AAOJI/AAOVI) and are offered near $2.60/$3.60 respectively.
Straddle traders that may have recently played the WebEx (WEBX) straddle may have taken some profits there and looking for another stock that is trading in a range of consolidation that may be ready to make a break.